1200mmcfd pipeline capacity from Karachi to Lahore: SNGPL approves capital intensive project

The Board of Directors of Sui Northern Gas Pipelines Limited (SNGPL) has conceptually approved a capital intensive project for development of additional 1200mmcfd capacity pipeline for the transportation of additional 1200mmcfd RLNG supply from Sawan to Lahore.
In a disclosure of material information sent to Pakistan Stock Exchange on Thursday, the SNGPL said that the Government of Pakistan has decided to import further 1200mmcfd LNG for upcoming LNG terminals in the country keeping in view the diminishing indigenous gas supply resources for meeting the increasing gas demand of all sectors for which there is an immediate need for the development of 1200mmcfd pipeline capacity from Karachi to Lahore.
The information said that the Company's Board of Directors in its meeting held on Wednesday has conceptually approved a capital intensive project for development of additional 1200mmcfd capacity pipeline from Sawan to Lahore by incurring capital expenditure on 42 inches dia x 780 kms (approximately) from Sawan to Qilla Sattar Shah (near Lahore) gas pipeline infrastructure with 87000HP Compressions and 36 inches dia x 130 kms (approximately), Spur lines for connecting new pipeline with the existing transmission system.Total cost of the project will be Rs 110,510 million while this project is expected to complete in October 2018. The aforesaid project has been conceptually approved by Board of Directors subject to approval by the Regulator ie Oil and Gas Regulatory Authority (OGRA) and arrangement of financing through ling term loan from Federal Government or through commercial borrowing backed by sovereign guarantee by the Federal Government including waiver of existing loan covenants from concerned quarters.